Nongfu Spring, China’s Bottled Watter Giant
Posted On 01/18/2021 22:37:21 by wisepowder

On Tuesday, September 8, the Chinese bottled water giant Nongfu Spring made a debut on the Hong Kong stock market. The company received a spectacular response from investors with share price surging 85% in early trading.To get more news about Nongfu Spring, you can visit en.nongfuspring official website.

Nongfu Spring has been “one of the hottest” Initial Public Offering (IPO) ever on the Hong Kong stock market. The IPO price for the stock 21.50 HKD allowing the company to raise $1.1 billion. Investors rushed during the IPO period as the public offering was oversubscribed 1,148 times. During the opening hours on Tuesday, the stock opened at 39.80.

The company’s strong fundamentals and high-profit margins make it a lucrative bet for investors. On the other hand, the timing for IPO proved beneficial for Nongfu Spring. Since tech and internet stocks have been already trading at high valuations, new investors were waiting for new opportunities in the market.

During its IPO, Nongfu Spring sold over 388 million shares. Some of its top investors include Singapore sovereign wealth fund GIC, hedge fund Coatue, and fund manager Fidelity.

Zhong Shanshan, Nongfu Spring’s low-profile billionaire founder currently controls 9.4 billion shares i.e. 84 percent of the company. He owns a 17% direct stake in Nongfu while the rest 67% comes through his wholly-owned subsidiary Yangshengtang.Nongfu Spring is one of the recent examples of how investors are eager to pour their money in quality stocks. apart from bottled water, Nongfu Spring also produces other packaged drinks like coffee, tea, and fruit juices. The company has been enjoying the largest share in China’s packaged drinking market over the last seven years.

Last year in 2019, Nongfu Spring recorded revenue of 24.02 billion yuan, surging over 17% from the previous year. However, during the first half of 2020, its revenue sunk as a result of the COVID-19 outbreak.

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